Mineral Resource and Ore Reserve Update Annual Statement for Tembang Gold-Silver Operation

Transcription

1 SUMATRA COPPER & GOLD PLC Registered No ASX Announcement: 28 April 2017 Mineral Resource and Ore Reserve Update Annual Statement for Tembang Gold-Silver Operation Summary Mineral Resource & Ore Reserve Statement at 31 December 2016 Sumatra Copper & Gold plc ( the Company ) announces its Annual Mineral Resource and Ore Reserve Statement, completed in accordance with the guidelines of the JORC Code (2012 Edition), for its Tembang Gold-Silver Operation in southern Sumatra, Indonesia ( Tembang ). Total Measured, Indicated and Inferred Resources of 6,102,000 tonnes at 2.0 g/t Au & 24 g/t Ag for 387,000 oz Au & 4,614,000 oz Ag Underground: 279,000 tonnes at 8.6 g/t Au & 54 g/t Ag for 78,000 oz Au & 485,000 oz Ag Open pit: 5,823,000 tonnes at 1.7 g/t Au & 22 g/t Ag for 310,000 oz Au & 4,129,000 oz Ag Total Proved and Probable Reserves of 1,647,000 tonnes at 2.5 g/t Au & 26.9 g/t Ag for 132,000 oz Au & 1,426,000 oz Ag Underground: 387,000 tonnes at 4.4 g/t Au & 29.2 g/t Ag for 55,000 oz Au & 363,000 oz Ag Open pit: 1,260,000 tonnes at 1.9 g/t Au & 26.2 g/t Ag for 77,000 oz Au & 1,062,000 oz Ag Key Assumptions and JORC 2012 Requirements Mineral Resources are reported inclusive of Ore Reserves and include all exploration and resource definition drilling information and mining production data up to 31 December Mineral Resources have been depleted for mining to 31 December Other adjustments have been made to interpretations and modelling to reflect ongoing mining information received up to 25 March 2017, if considered material. Gold price assumptions used to estimate Mineral Resources and Ore Reserves are: Mineral Resources: US$1,500/oz gold Ore Reserves: US$1,250/oz gold The Mineral Resources and Ore Reserves have been classified in accordance with the guidelines set out in the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves, published by the Joint Ore Reserves Committee (JORC), of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia, December 2012 (the JORC Code or JORC 2012 ). The Company s full Mineral Resource and Ore Reserve statement is tabulated in Table 1 and Table 5 respectively. Material Information for the individual deposits, including a Material Information Summary pursuant to ASX Listing Rules 5.8 and 5.9 and the Assessment and Reporting Criteria in accordance with JORC 2012 requirements, is included below and in Appendix A to this announcement. Mineral Resource Statement as at 31 December 2016 Cube Consulting Pty Ltd ( Cube ) of Perth, Western Australia, was contracted by the Company to complete a review and update of the Mineral Resource estimates for the Belinau and Berenai gold-silver deposits, which are currently subject to underground and open-pit mining operations respectively. A site visit was undertaken by Cube s designated Competent Person (CP) between 6 and 13 December The CP was already familiar with Tembang, and other Cube CPs had previously made visits to Tembang. Sumatra Copper & Gold plc (ASX:SUM) Page 1 of 12

2 Table 1: Tembang Gold-Silver Operation Mineral Resource Statement as at 31 December 2016 Cut-off grades: 2.78 g/t Au (Belinau Underground) and 0.5 g/t Au (open pits) Deposit Belinau Undergound Mineral Resource Category Tonnes Au (g/t) Ag (g/t) Au (oz) Ag (oz) Measured 53, , ,000 Indicated 156, , ,000 Inferred 70, ,000 48,000 Total 279, , ,000 TOTAL Measured 53, , ,000 UNDERGROUND Indicated 156, , ,000 Inferred 70, ,000 48,000 TOTAL 279, , ,000 Measured Berenai Open Pit Indicated 1,219, ,000 1,179,000 Inferred 779, , ,000 Total 1,998, ,000 1,831,000 Measured Asmar Open Pit Indicated 1,522, ,000 1,009,000 Inferred 1,495, , ,000 Total 3,017, ,000 1,584,000 Measured 3, ,000 1,000 Buluh Open Pit Indicated 10, ,000 4,000 Inferred 14, ,000 6,000 Total 27, ,000 11,000 Measured Bujang Open Pit Indicated 214, , ,000 Inferred 62, ,000 29,000 Total 276, , ,000 Measured 1, ,000 Siamang Open Pit Indicated 95, ,000 83,000 Inferred 182, , ,000 Total 278, , ,000 Measured Tembang-Anang Indicated 170, , ,000 Inferred 55, ,000 53,000 Total 226, , ,000 TOTAL Measured 4, ,000 2,000 OPEN PIT Indicated 3,231, ,000 2,686,000 Inferred 2,587, ,000 1,440,000 TOTAL 5,823, ,000 4,129,000 TOTAL Measured 57, , ,000 UNDERGROUND & Indicated 3,387, ,000 2,969,000 OPEN PIT Inferred 2,657, ,000 1,488,000 TOTAL 6,102, ,000 4,614,000 Sumatra Copper & Gold plc (ASX:SUM) Page 2 of 63

3 Notes to Table 1: Mineral Resources are inclusive of Ore Reserves; Mineral Resources reported under JORC 2012 guidelines; Rounding to the nearest 1,000 (tonnes, ounces), 0.1 g/t (gold grade), and 1.0 g/t (silver grade) may result in some slight apparent discrepancies in totals; and Where applicable, Mineral Resource estimates as at 31 December 2016 are reported after applying mining depletion to the Mineral Resource estimates reported in March Belinau: o a lower block cut-off of 2.78 gram gold*metres/tonne accumulation, which incorporates a minimum mining width of 1.2m; o high grade cuts of 80 g/t Au and 800 g/t Ag have been applied; and o a gold price of US$1,500 has been applied. Berenai: o a lower block cut-off grade of 0.5 g/t Au has been applied to the mineralisation; o high grade cuts of 40 g/t Au, 120 g/t Ag have been applied to all mineralisation; and o a gold price of US$1,500 has been applied. Asmar, Buluh, Bujang, Siamang, Tembang-Anang: o a lower block cut-off grade of 0.5 g/t Au has been applied to the mineralisation; o various high grade cuts were applied to each deposit; and o a gold price of US$1,500 has been applied. Mineral Resource Estimates March 2017 Figure 1. Plan View of Tembang deposits The Belinau Mineral Resource is currently being exploited from underground via decline access from within the former Belinau open pit. Sumatra Copper & Gold plc (ASX:SUM) Page 3 of 63

4 The Berenai Mineral Resource estimate encompasses the Berenai, Nuri and Central vein systems, within one open pit mining operation. The Belinau and Berenai Mineral Resources have been predominantly defined by diamond drilling and lesser reverse circulation (RC) drilling, and newly acquired grade control data from more recent RC and blast hole drilling, trenching, face mapping and sampling, and bench mapping and sampling. The previous mineralisation interpretations of the Belinau and Berenai deposits have both been reviewed and revised by Tembang mine geology personnel, under the supervision of consulting geologist, Mr Gary Powell, and Cube s CP, using the more recent data acquired during mining operations. This has had a material effect on the estimation strategy employed by Cube for both deposits. 1. Belinau Mineral Resource Estimate The Measured, Indicated and Inferred Resource for the Belinau underground mine was estimated as at 31 December 2016 at 279,000 tonnes at a grade of 8.6 g/t Au and 54 g/t Ag for a total 78,000 ounces of contained gold and 485,000 ounces of contained silver. The previous (November 2013) Mineral Resource estimate was 338,000 tonnes at a grade of 8.9 g/t Au and 72 g/t Ag for a total 97,000 ounces of contained gold and 785,000 ounces of contained silver (Table 2). Table 2: Comparison of Belinau Mineral Resource Estimate for 2013 and 31 December 2016 (undiluted, lower cut-off of 2.78 g/t Au) Mineral Resource 1 Reporting Date Mineral Resource Category Tonnes Gold Grade (g/t) Silver Grade (g/t) Gold (contained ounces) Silver (contained ounces) November Measured 132, , ,000 Indicated 139, , ,000 Inferred 67, , ,000 Total 338, , ,000 March , 4 Measured 53, , ,000 (depleted to Indicated 156, , , Dec 2016) Inferred 70, ,000 48,000 Total 279, , ,000 Notes to Table 2: 1 Mineral Resources are inclusive of Ore Reserves 2 November 2013 estimate by Mr Rob Spiers of HS&C Consultants Pty Ltd in compliance with JORC depleted to 31 December Mineral Resource estimates have been rounded to the nearest 1,000 tonnes; 0.1 g/t gold grade & 1.0 g/t silver grade and 1,000 oz contained metal; Minimum mining width (1.2m) left unchanged from March 2015 estimate. The net change in the Belinau underground Mineral Resource is a reduction of 19,500 ounces of gold and 299,700 ounces of silver after adjustment for mining depletion, primarily due to the following: a) mining depletion of 82,500 tonnes at an average diluted mined grade of 5.1 g/t Au and 85 g/t Ag (13,500 oz gold, 224,200 oz silver) since the November 2013 resource estimate; b) a review of diamond drill core, underground mining, geological mapping and sampling data, leading to a re-interpretation of the Belinau vein mineralisation, resulting in slightly narrower horizontal widths of the vein and a reduced tonnage, particularly in the mined areas; c) an increase in vein grades in the central part of the deposit after taking into account face sampling in developed drives; Sumatra Copper & Gold plc (ASX:SUM) Page 4 of 63

5 d) a re-interpretation of the western end of the main Belinau vein. Belinau vein changes character at the western end of the current development at level 1 to level, 6 resulting in narrow, discontinuous and lower grade mineralisation within the main structure; and e) the addition of a proportion of internal waste inside interpreted wireframes, to reflect the discontinuous pinch and swell nature of the Belinau vein. 2. Berenai Mineral Resource Estimate Since July 2015, the Berenai open pit was mined from the uppermost elevations above the water table. In December 2016, dewatering of the former open-pit encountered significant undocumented backfill below the water table and, as a consequence, inaccuracies with the as-built survey of the former open-pit shell has resulted in a net decrease in the in-situ tonnes and contained metal from the previous March 2015 resource model. Cube recently completed an updated Mineral Resource estimate in accordance with the guidelines of JORC The total Indicated and Inferred Resource for the Berenai gold deposit, at a block cut-off grade of 0.5 g/t Au, has been estimated at 2.0 million tonnes at a grade of 1.9 g/t Au and 29 g/t Ag for a total contained 123,000 ounces gold and 1.83 million ounces silver. By comparison, the March 2015 Mineral Resource estimate was 2.3 million tonnes at 2.0 g/t Au and 34 g/t Ag for total contained 148,000 oz gold and 2.48 million oz silver. Table 3: Comparison Summary of the total undiluted Berenai Mineral Resource estimates for 2015 and 31 December 2016 Mineral Resource 1 Reporting Date Mineral Resource Category Tonnes Gold Grade (g/t) Silver Grade (g/t) Gold (contained ounces) Silver (contained ounces) March Measured Indicated 1,628, ,000 1,797,000 Inferred 669, , ,000 Total 2,297, ,000 2,482,000 March Measured (depleted to Indicated 1,219, ,000 1,179, Dec 2016) Inferred 779, , ,000 Total 1,998, ,000 1,831,000 Notes to Table 3: 1 Mineral Resources are inclusive of Ore Reserves 2 March 2015 estimate by Mr Chris Black of Cube in compliance with JORC Previous Mineral Resource estimate depleted to 31 December Mineral Resource estimate has been rounded to the nearest 1,000 tonnes; 0.1 g/t gold grade and 1.0 g/t silver grade, and 1,000 oz contained metal The net reduction in the total Berenai Mineral Resource is primarily due to the following adjustments: a) depletion applied to the previously assigned in situ volume containing undocumented backfill in the open-pit below the water table, amounting to 61,000 tonnes at an average grade of 2.3 g/t Au and 33 g/t Ag (4,500 oz gold and 65,800 oz silver); b) mining depletion of approximately 150,000 tonnes at an average mined grade of 1.4 g/t Au and 25 g/t Ag (6,500 oz gold and 120,200 oz silver) since the March 2015 Mineral Resource estimate; and c) a review of diamond drill core, recent mining, mapping and sampling data, leading to a reinterpretation and grade interpolation parameters of each of the Berenai, Central and Nuri vein mineralisation systems. The interpreted composite veins are narrower in some areas, compared to the previous interpretations, and the continuity of mineralisation is less continuous due to the anastomosing and discontinuous nature of individual veins within the composite vein outlines. Sumatra Copper & Gold plc (ASX:SUM) Page 5 of 63

6 3. Asmar, Bujang, Buluh-Siamang and Tembang-Anang Mineral Resource Estimates Since July 2015, the Asmar, Buluh-Siamang and Bujang open-pits have been partially mined, initially for commissioning purposes and then for ongoing run-of-mine production while the Berenai pit cut-back was in progress. Mining at Bujang was halted in November 2015, Asmar in July 2016 and Buluh-Siamang in the first week of January The Mineral Resource estimates for these deposits were last reported in 2013 (Buluh), 2014 (Asmar, Tembang-Anang) and 2015 (Bujang, Siamang). Since mining depletion is not material at Asmar, Buluh and Bujang, the resources were not re-estimated and have only been depleted for mining. The Mineral Resource estimate for Tembang-Anang vein remains as previously reported, since no mining activity has been carried out on this deposit. The Mineral Resource estimate for Siamang has not been re-estimated, and remains unchanged, since mining has recently been completed and the remaining resource available for open pit extraction is limited at the current gold price. Table 4: Comparison Summary of the total Mineral Resource Estimates for 2015 and 31 December 2016 for Asmar, Buluh, Bujang, Siamang and Tembang-Anang Mineral Resource 1 Reporting Date Mineral Resource Category Tonnes Gold Grade (g/t) Silver Grade (g/t) Gold (contained ounces) Silver (contained ounces) ASMAR March Measured Indicated 1,636, ,000 1,082,000 Inferred 1,509, , ,000 Total 3,145, ,000 1,659,000 March Measured (depleted to Indicated 1,522, ,000 1,009, Dec 2016) Inferred 1,495, , ,000 Total 3,017, ,000 1,584,000 BULUH November Measured 3, ,000 Indicated 14, ,300 5,000 Inferred 14, ,400 6,000 Total 28, ,500 12,000 March Measured 3, ,000 (depleted to Indicated 10, ,300 4, Dec 2016) Inferred 14, ,400 6,000 Total 27, ,500 11,000 BUJANG February Measured Indicated 217, , ,000 Inferred 69, ,000 44,000 Total 286, , ,000 March Measured (depleted to Indicated 214, , , Dec 2016) Inferred 62, ,000 29,000 Total 276, , ,000 Sumatra Copper & Gold plc (ASX:SUM) Page 6 of 63

7 SIAMANG March Measured 60, ,000 94,000 Indicated 178, , ,000 Inferred 190, , ,000 Total 428, , ,000 March Measured 1, ,000 (depleted to Indicated 95, ,000 83, Dec 2016) Inferred 182, , ,000 Total 278, , ,000 TEMBANG-ANANG March Measured Indicated 170, , ,000 Inferred 55, ,000 53,000 Total 226, , ,000 Notes to Table 4: 1 Mineral Resources are inclusive of Ore Reserves 2 updated in November 2013 by Mr Rob Spiers of HS&C Consultants Pty Ltd in compliance with JORC updated March 2014 by Mr Chris Black of Cube in compliance with JORC updated February 2015 by Mr Chris Black of Cube in compliance with JORC updated March 2015 by Mr Chris Black of Cube in compliance with JORC previous JORC 2012 Mineral Resource estimate is depleted by mine production to 31 December Mineral Resource estimates have been rounded to the nearest 1,000 tonnes; 0.1 g/t gold grade and 1.0 g/t silver grade, and 1,000 oz contained metal. The net reductions in the Asmar, Buluh, Bujang and Siamang Mineral Resources to 31 December 2016 are primarily due to mining depletion since the commencement of open pit mining operations in July Sumatra Copper & Gold plc (ASX:SUM) Page 7 of 63

8 Ore Reserve Statement as at 31 December 2016 The updated Tembang Ore Reserve encompasses the Belinau, Berenai, Asmar, Tembang-Anang, Bujang and Buluh-Siamang) deposits. The Ore Reserve is based on the Mineral Resource estimates as at 31 December 2016 using a gold price of US$1,250 per ounce and a silver price of US$15 per ounce. Table 5: Tembang Gold-Silver Operation Ore Reserve Statement as at 31 December 2016 Deposit Ore Reserve Category Tonnes (x 1,000) Au (g/t) Ag (g/t) Au (oz) Ag (oz) Proved ,000 48,000 Belinau Probable , ,000 Undergound Total , ,000 TOTAL Proved ,000 48,000 UNDERGROUND Probable , ,000 TOTAL , ,000 Berenai Open Pit Proved Probable , ,000 Total , ,000 Asmar Open Pit Proved Probable , ,000 Total , ,000 Buluh Open Pit Proved Probable ,000 26,000 Total ,000 26,000 Bujang Open Pit Proved Probable ,000 98,000 Total ,000 98,000 Tembang-Anang Proved Probable ,000 63,000 Total ,000 63,000 TOTAL Proved OPEN PIT Probable 1, ,000 1,062,000 TOTAL 1, ,000 1,062,000 TOTAL Proved ,000 48,000 OPEN PIT & Probable 1, ,000 1,378,000 UNDERGROUND TOTAL 1, ,000 1,426,000 The updated Tembang Ore Reserve estimate is based on the updated Mineral Resource estimates, as detailed in this announcement, with modifying factors applied. The modifying factors and associated criteria used in determining the Ore Reserve are summarised as follows and detailed in Appendix A: Geological models used in the estimation are summarised in Appendix A: Table 1 Report: Modelling Techniques. Cut-off grades were determined based on actual unit costs currently being experienced at the Tembang operations. A gold-equivalent cut-off grade taking into account silver credits was used for modelling purposes. Mineral Resources are reported to gold cut-off grades only for comparison Sumatra Copper & Gold plc (ASX:SUM) Page 8 of 63

9 purposes. In determining gold-equivalent grades, the Company has used a price of US$1,250 per ounce for gold and US$15 per ounce for silver with recoveries of 90% and 75% respectively. These assumptions for gold and silver provide a silver to gold ratio of 70 to 1. Conventional long hole stoping mining methodology with waste backfill has previously been applied to Belinau underground. The operation is currently changing over to modified shrinkage stoping with waste backfill. This methodology has been applied to levels below Level 6. Levels 5 and Level 6 are currently using bench cut and fill methods. Inferred Resources (<10%), are only utilised in the Ore Reserve estimation when those panels need to be developed in order to access higher grade Indicated Resources (which must be able to carry all costs). This mostly occurs where the bottom of stopes previously classified as indicated in the November 2013 resource now carry some inferred material. Underground stoping at Belinau used a 95% mining recovery factor based on the length, continuity and verticality of the ore and variable percentage dilution at zero grade based on a minimum mining width of 1.5m and a 0.2m skin dilution for vein widths greater than 1.5m. Conventional drill and blast, load and haul mining methodology is currently being used for the open pits. Mining recovery for all open pits is estimated at 95%. The open pit dilution envelope for Bujang, Tembang-Anang and Siamang was an additional 10% of tonnes at 0.5 Au g/t grade. The open pit dilution envelope for the Berenai deposit is 10% additional tonnes estimated at 0.5 g/t Au and 10g/t Ag. Open pit dilution at Asmar is included in the recoverable model resource estimate. The processing circuit is a conventional CIL plant, which is used to successfully process all open pit and underground ore feed. Metallurgical recoveries applied are based on historical and current recoveries in the CIL plant. The Project is fully permitted allowing production to continue for the life of mine. Mineral Resource and Ore Reserve Governance Statement In accordance with ASX Listing Rule , governance of the Company s Mineral Resources and Ore Reserves development and management activities is a key responsibility of the Executive Management of the Company. Independent geological and mine engineering consultants to the Company oversee reviews and technical evaluations of the estimates and evaluate these with reference to actual physical, cost and performance measures. The evaluation process also draws upon internal skill sets in operational and project management, ore processing and commercial/financial areas of the business. The Chief Operating Officer (in consultation with nominated industry consultants) is responsible for monitoring the planning, prioritisation and progress of exploratory and resource definition drilling programs across the Company and the estimation and reporting of resources and reserves. These definition activities are conducted within a framework of quality assurance and quality control protocols covering aspects including drill hole siting, sample collection, sample preparation and analysis as well as sample and data security. A four-level compliance process guides the control and assurance activities: Provision of internal policies, standards, procedures and guidelines; Sumatra Copper & Gold plc (ASX:SUM) Page 9 of 63

10 Mineral Resource and Ore Reserve reporting based on well-founded geological and mining assumptions and compliance with external standards such as the Australasian Joint Ore Reserves Committee (JORC) Codes; External review of process conformance and compliance; and Internal assessment of compliance and data veracity. The Executive Management aims to promote the maximum conversion of identified mineralisation into JORC 2012 compliant Mineral Resources and Ore Reserves. The Company reports its Mineral Resources and Ore Reserves on an annual basis, in accordance with ASX Listing Rule 5.21 and clause 14 of Appendix 5A (the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, or the JORC Code 2012 Edition). Mineral Resources are quoted inclusive of Ore Reserves. Competent Persons named by the Company are members of the Australasian Institute of Mining and Metallurgy (AusIMM) and/or the Australian Institute of Geoscientists (AIG), and qualify as Competent Persons as defined in the JORC Code For further information please contact: David Fowler Phil Retter Managing Director Investor Relations Sumatra Copper & Gold plc NWR Communications M: dfowler@scgplc.com phil@nwrcommunications.com.au About Sumatra Copper & Gold plc Sumatra Copper & Gold plc (ASX: SUM) is a gold and silver producer and precious metals explorer in southern Sumatra, Indonesia. The Company s flagship asset is its Tembang gold-silver mine, currently in production. The Company also has an extensive exploration portfolio with projects ranging from brownfield, near-production opportunities to strategically located greenfield holdings. Directors Steve Robinson Jocelyn Waller Gavin Caudle Non-Executive Chairman Non-Executive Director Non-Executive Director David Fowler Adi Sjoekri Andy Robb Managing Director Executive Director Non-Executive Director Contact Level 1, 5 Ord Street Registered address West Perth WA Parkside, Cambridge Western Australia United Kingdom CB1 1PN T: Registered Number E: info@scgplc.com ASX Code: SUM Web: Sumatra Copper & Gold plc (ASX:SUM) Page 10 of 63

11 Competent Person Statements Competent Person s Statement Exploration Results The information in this report that relates to Exploration Results is based on information compiled by Mr Gary Powell, who is an independent consultant of the company and a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Powell has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Powell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Competent Person s Statement Underground Ore Reserves The information in this report that relates the Underground Ore Reserves is based on information compiled by Mr Robert Gregory of Sumatra Copper & Gold, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Gregory has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Gregory consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Competent Person s Statement Open Pit Ore Reserves The information in this report that relates the Underground Ore Reserves is based on information compiled by Mr Dallas Cox of Crystal Sun Consulting who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Cox has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Cox consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Competent Person s Statement Mineral Resources - Asmar, Bujang and Tembang-Anang The information in the report to which this statement is attached that relates to the 2015 Mineral Resources estimates for Asmar, Bujang and Tembang-Anang, is based on information compiled by Mr Chris Black who is a member of the Australian Institute of Geoscientists and was then a full time employee of Cube Consulting Pty Ltd. Mr Chris Black has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australian code for reporting of Exploration Results, Mineral Resource and Ore Reserves'. Mr Chris Black has previously consented to the inclusion in the report of the matter based on his information in the form and context in which it appears. The updated Mineral Resources estimates for Asmar, and Bujang is based on the application of mining depletion to the original 2015 Mineral Resources estimates for Asmar, Bujang and Tembang-Anang, compiled by Mr Chris Black, and is based on information compiled by Mr Gary Powell, who is an independent consultant of the company and a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Powell has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Powell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Competent Person s Statement Mineral Resources Berenai and Belinau The information in the report to which this statement is attached that relates to the Mineral Resources estimate for Berenai and Belinau, is based on information compiled by Mr Denny Wijayadi who is a Member of the Australian Institute of Geoscientists and a full time employee of Cube Consulting Pty Ltd. Mr Wijayadi has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being Sumatra Copper & Gold plc (ASX:SUM) Page 11 of 63

12 undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australian code for reporting of Exploration Results, Mineral Resource and Ore Reserves'. Mr Wijayadi consents to the inclusion in the report of the matter based on his information in the form and context in which it appears. Competent Person s Statement Mineral Resources - Buluh-Siamang The information in the report to which this statement is attached that relates to the 2015 Mineral Resources estimate for Buluh-Siamang, is based on information compiled by Mr Robert Spiers who is a member of the Australian Institute of Geoscientists and was then a full time employee of HS&C Consultants Pty Ltd. Mr Robert Spiers has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australian code for reporting of Exploration Results, Mineral Resource and Ore Reserves'. Mr Robert Spiers consents to the inclusion in the report of the matter based on his information in the form and context in which it appears. The updated Mineral Resources estimates for Buluh-Siamang is based on the application of mining depletion to the original 2015 Mineral Resources estimates for Buluh-Siamang, compiled by Mr Chris Black, and is based on information compiled by Mr Gary Powell, who is an independent consultant of the company and a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Powell has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Powell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Sumatra Copper & Gold plc (ASX:SUM) Page 12 of 63

13 APPENDIX A INFORMATION MATERIAL TO UNDERSTANDING THE EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES Sumatra Copper & Gold plc (ASX:SUM) Page 13 of 63

14 JORC Code, 2012 Edition JORC TABLE 1: THE INFORMATION IN THIS TABLE REFERS TO THE FOLLOWING PROJECTS: BERENAI AND BELINAU Section 1: Sampling Techniques and Data (Criteria in this section apply to all succeeding sections) Sampling techniques Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where industry standard work has been done this would be relatively simple (e.g. reverse circulation drilling Diamond (DH) core and reverse circulation (RC) chips samples are the two main sample types for Berenai. Diamond (DH) core; reverse circulation (RC) chips and Underground face channel samples are the three main sample types for Belinau. Drilling is typically completed along 25m spaced, regular sections at 25-50m drill hole spacing to ensure that the deposits have representative samples collected. Underground face channel samples are taken every cut (+/- 3meters), the underground samples were taken at right angles to mineralisation (i.e. horizontal face channel samples) and the location, thickness and tenor outlined is representative of the mineralisation. The diamond drill core is sampled on selective, regular intervals based on observed geological parameters. RC chip samples were taken at one metre intervals across the mineralised zones. The samples were split to produce a 3kg subsample that was pulverised to produce a 30 g charge for fire assay. Historic RC sampling practices prior to DNS Sumatra Copper & Gold plc (ASX:SUM) Page 14 of 63

15 Drilling techniques Drill sample recovery was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay ). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Method of recording and assessing core and chip sample recoveries and results assessed. (PT Dwinad Nusa Sejahtera) are assumed to have been collected using standard industry practice for the time. Underground face channel samples are taken every cut (+/- 3meters). The underground face channel samples are 3 5kg taken at right angles to mineralisation. PQ/PQ3/HQ/HQ3 sized diamond drill core is used. Standard wireline triple-tube (split sets) are used. Core is oriented wherever possible using the spear technique. Most of the holes were angled grid west on the main vein, except where steep topography did not allow this, to get close to true thickness intersections of the quartz veining. RC drilling for infill and grade control has been used in Berenai. A geotechnician is present at each drill rig on a 24hr /7 day basis. The geotechnician records recovery and RQD at the drill rig before core is moved. All core is laid out at the rig in ½ PVC pipe for inspection. The driller marks zones of core loss with wooden block. Recovered core is measured and compared to each drilling interval. RC sample recovery is recorded by weighing the complete sample recovered and comparing this to the theoretical volume from the hole multiplied by the estimated bulk density. No RC recovery data is recorded prior to DNS. Sumatra Copper & Gold plc (ASX:SUM) Page 15 of 63

16 Logging Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. HQ3 triple tube (split sets) are used to maximize core recovery. Drillers are informed prior to start of hole where zones of interest are expected. Once the quartz vein lodes are intersected, drillers use short (1.5m) core runs to maximise recovery. No consistent relationship between grade and core recovery and therefore no evidence that indicates a systematic sample bias. Sample recoveries on historic RC samples are unknown, however the RC drilling practices prior to DNS are assumed to have been standard industry practice for the time. Drill core is logged for geotechnical and structural geology, lithology, alteration, mineralization and mineralogy, presence and type of quartz veining, and presence/intensity of Fe-oxides. Structural data including veins, shears, fractures are recorded relative to the core axis. Where core has been oriented measurements are collected using a rocket launcher" and recorded as normal strike / dip (as opposed to alpha/beta). The RC chip samples were logged descriptively and codes are used to describe lithology and alteration type / intensity, as well as various percentages of minerals. Core logging is both qualitative and quantitative. Core is logged descriptively and codes are used to describe all alteration type/ intensity, quartz type and intensity as well as various percentages of minerals. Whole drill core is photographed at the drill rig and half core is photographed again after sampling. All diamond drill holes are logged for geotechnical and geological information. All RC drill chips are logged to a level of detail to support appropriate mineral resource estimation. Sumatra Copper & Gold plc (ASX:SUM) Page 16 of 63

17 Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all subsampling stages to maximise representivity of samples. Diamond drill core is sawn lengthwise into two equal parts (halves). Samples of half core are taken on approximately one metre intervals. Efforts are made to ensure core samples are greater than 0.5m and no more than 2.0m. Continuous sampling is completed through mineralized vein lodes and selective sampling is used outside of these mineralised intervals. A triple tier splitter was utilised at the RC rig to collect the 1m samples into calico bags for assay. The splitter was cleaned between each samples, whilst the cyclone was cleaned after each 6m rod change. Wet samples are dried prior to splitting to get a representative sample. Development and stope samples are taken as rock chips by face channel sampling of the mining face according to geological boundaries. Diamond core sample size is considered to be appropriate for this style of deposit. Sampling of half core is minerals industry standard practice. Sample preparation involves drying, weighing, crushing (95% <5mm) and pulverising (95% <75um) the entire sample using a LM2 pulveriser. Duplicate samples are collected and assayed. Certified reference material or "standards" are utilised. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field Duplicates of half-core samples have been taken and demonstrate variability expected in a narrow vein, high grade gold deposit. Regular and systematic insertion of blanks (1 in 20 samples) and standards (1 in 20 samples) have been carried out since the start of the drilling programs in Sumatra Copper & Gold plc (ASX:SUM) Page 17 of 63

18 duplicate/second-half sampling Quality of assay data and laboratory tests Whether sample sizes are appropriate to the grain size of the material being sampled. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. The current practice by SCG, for grade control underground face sample is to take a field duplicate every fifty samples. Samples of half diamond drill core is appropriate for the grain size of mineralization being sampled. Exploration drilling samples are crushed, pulverized and assayed at Intertek Testing Services laboratory The following elements and ITS techniques are used: Triple acid digestion (HCL/HNO3 /HCLO4). Au by 50 gram Fire Assay with lower/upper detection limits of 0.005/50 ppm Au. Ag by 30 g AAS with accurate volumetric finish with lower/upper detection limits of 5/10,000ppm Ag. Grade control and Underground Face samples are analysed on site by PT. Geoservices Sub-sample of 30 gram pulps are analysed by Aqua Regia methods for Au and Ag. Not Applicable Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been Duplicates that have been collected and analysed recently demonstrate a level variability expected from a narrow vein, high grade precious metal deposit. Blanks have not been inserted in the sample steam. Certified Reference Material (CRM) or "standards" have been inserted into the Sumatra Copper & Gold plc (ASX:SUM) Page 18 of 63

19 Verification of sampling and assaying established. The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. sample stream at regular interval (1/20) with results showing that Lab performance is well within industry standard. Umpire Lab analysis of duplicates of coarse rejects and pulps have been completed at SGS Indo Assay, Jakarta every six months on average with results demonstrating that the primary Lab, Intertek is within industry standards. No independent sampling has been undertaken by Cube. No specific twin holes have been drilled. Based on the close spaced drilling, the mineralisation intersections show high grade variability between the holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. Drilling data is collected on hard copies (example A3 geological log sheet) and MS Excel files (example sample consignment). Geologists manually enter drill logs, sample consignments, etc. Drilling data is stored and managed using MS Access. Database Administrator receives drilling, geological and assay data and loads directly into MS Access. No adjustments have been made to assay data, all assays in database are based on original assay results. Sumatra Copper & Gold plc (ASX:SUM) Page 19 of 63

20 Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. In 2007 SCG commissioned PT GeoServices to complete a topographic survey of the Tembang post-mining surface. A set of survey beacons was established tied to the Indonesian UTM national grid. From the pick-up of old drill collar markers and infrastructure a correction factor was established to adjust the existing BTM data to true UTM coordinates. All drill collars are surveyed by company surveyors using total station survey equipment and tied in to the independently verified system of triangulation benchmarks as outlined above. All drill holes were surveyed at 50m intervals downhole either with a single shot camera or as with the recent drilling using a digital orientation device. Readings indicate that deviation is minimal. All coordinates are quoted in UTM-UTS Zone 48 South. Data spacing and distribution Quality and adequacy of topographic control. Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is Since 2007 the definition of the surface topography has been improved with more detailed survey work. The approximate depths of the flooded pits have been established from raft borne plumb-line surveys. The topographic data used in the reported data was updated in 2014 and includes more than 125,000 individual survey points, and is kept updated during the mining process. Since backfill was encountered after dewatering Berenai pit in later part of 2016, ammendments to the 2014 surface topography have been estimated for the Berenai, Bujang and Belinau historical open-pits using projections to current pit wall slopes. Exploration data spacing is variable with collar spacing varying from 25m x 25m to 50m x 50m. Grade control data spacing is 12.5m x 5m. Underground face channel samples are taken every cut (+/- 3meters). The data spacing and distribution is sufficient to establish the geological and grade continuity appropriate for the mineral resource estimation. Data spacing Sumatra Copper & Gold plc (ASX:SUM) Page 20 of 63

21 sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied has been taken into account when determining the mineral resource classification to be applied to the estimate. Orientation of data in relation to geological structure Whether sample compositing has been applied. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. No compositing has been applied to reporting of drilling results. Downhole composite has used for Berenai Compositing of assay data for the Belinau Mineral Resource estimation has used mineralised intercept intervals. Most of the drilling is planned and drilled normal (right) angles to the target vein lodes except in areas where natural or man-made topography can t be avoided. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. No material sampling bias caused by drilling direction has been recognized. Sumatra Copper & Gold plc (ASX:SUM) Page 21 of 63

22 Sample Security Audits or reviews The measures taken to ensure sample security. The results of any audits or reviews of sampling techniques and data. Drill core samples are moved by vehicle in covered core trays from the drill site to the core processing facility at Tembang Camp. Company personnel log, photograph and split the core. Half of the core is retained in the core shed as a geological reference and further test work if required. All samples for assay are bagged in numbered calico sample bags which are then sewn in to polyweave bags for transport and secured with cable wire and labelled security tags. Samples are dispatched by a regular door to door courier service from the Tembang Site straight to the ITS laboratory in Jakarta. This is considered to be a secure and reasonable procedure and no instances of tampering with samples have been observed since commencement of drilling activities in Representatives of H&S Consultants visited the project site in 2013 to review core handling and sampling procedures and found these procedures to industry best practices. Representatives of Cube Consulting visited the project site in 2013 and December 2016 to review core handling and sampling procedures and found these procedures to be industry best practices. Sumatra Copper & Gold plc (ASX:SUM) Page 22 of 63

23 Section 2: Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria Explanation Mineral tenement and land tenure status Exploration done by other parties Geology Sumatra s tenure is under the Indonesian national Izin Usaha Pertambangan or Mining Business License (IUP) system. The Tembang project is held by PT Dwinad Nusa Sejahtera (DNS), a 100% owned subsidiary of SCG, within IUP licence 22/KPTS/DISAMBEN/2009 that covers both the old Rawas Mine site and surrounding area covering a total of approximately 100km2. Sumatra s tenure is in production forest and as such requires a borrow and use permit from the Indonesian department of forestry. Sumatra was granted a borrow and use permit for its Dwinad IUP in April 2013 (ASX release 26/04/2013). CRA (now Rio Tinto) started exploring in the area in 1986 and negotiated a Contract of Work agreement with the government under the name of a PMA company, PT Barisan Tropical Mining (PT BTM). The Rawas deposit was outlined, and regional sampling was carried out elsewhere within the then Contract of Work (COW) boundaries. By 1991, CRA had drilled 81 diamond drill holes for 11,747 metres, and completed over 9,000 metres of trenching mainly focussed on the Berenai and associated vein systems. CRA conducted feasibility at the time and concluded that the deposit did not have the potential to meet CRA s Mineral Resource size criteria. Laverton took over the BTM CoW and entered the Feasibility Study period in A move to the Construction period was approved in November Laverton completed a further 17,148 metres of diamond drilling and 101,388 metres of RC drilling for the feasibility and construction. The mineralisation at Tembang is considered to be an intermediate sulphidation epithermal style. Gold-silver bearing quartz sulphide veins are hosted by mostly brittle andesitic rocks of the Miocene Hulusimpang Formation. Base metals are generally low except at depth in some of the vein systems. Drill hole information This current report is not disclosing specific drilling results. All recent drill hole intersections have been separately reported. List of drill holes forming the basis of the Mineral Resource estimates is in the report Appendix 5. Sumatra Copper & Gold plc (ASX:SUM) Page 23 of 63